Chip inventory levels remain low, says VLSI

Dylan McGrath, EE Times
(11/11/2009 6:33 PM EST)

SAN FRANCISCO—Chip inventory levels remain low by historical standards, despite reports by some chip makers of higher inventories that have risen for much of the year, according to market research firm VLSI Research Inc.

According to VLSI Research's preliminary data for September, inventories held were equal to only one month of IC billings, the firm said. This inventory-to-billing ratio is low in comparison to data that stretches back to the early 1980s, according to VLSI Research CEO G. Dan Hutcheson. "It's not surprising to see inventories rise, since the semiconductor industry normally moves into the critical Christmas production ramp in the summer months," Hutcheson said in a statement. "The reported chip shortages tell you there's not enough inventory in the supply chain for the fourth quarter."

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